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Abbott considers more Russia sanctions

Paul Osborne, AAP Senior Political Writer

Russia must stop "bullying" Ukraine or face increased sanctions from Australia and its western allies, Prime Minister Tony Abbott has warned.

Russia on Thursday announced a 12-month trade ban on agricultural goods from Australia, the European Union, United States and several other western nations.

The tit-for-tat response followed tough sanctions imposed by Australia's partners in the wake of Russia's policy on Ukraine, which has faced political instability for months amid an internal conflict with Russian-backed separatists.

Australia has so far imposed about 50 minor sanctions.

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It held off taking tougher action while Australian and Dutch police attempted to recover the remains and possessions of 298 people, including 38 Australians, killed when Malaysia Airlines flight MH17 was shot down over eastern Ukraine on July 17.

Now that Australian personnel have largely completed Operation Bring Them Home and returned to the Netherlands, Mr Abbott can consider more action.

"Russia is a big country trying to bully a small country," he said, branding any Russian troop movement into Ukraine as an "invasion".

"I say to President (Vladimir) Putin, if he wants to be regarded as a world leader, as opposed to becoming an international outcast, hold your forces back, stay behind the border and let the business of Ukraine be sorted out by the Ukrainians."

Australia was still working on what further sanctions would be imposed, but Mr Abbott said they would be "strong".

"The way to avoid increased sanctions is for Russia to call off what it appears to be in preparation for," he said referring to an estimated 20,000 troops amassed on the Ukrainian border.

It was beyond doubt pro-Russian separatists armed with a Russian missile system were responsible for the downing of MH17 over Ukraine's Donetsk region, Mr Abbott said.

"For the Russians to be talking about sanctions against us makes me sick in the guts," he said, noting it happened on the same day as Australia was holding a memorial service for the domestic victims of MH17.

President Putin is due to attend a leaders meeting of the Group of 20 industrialised countries in Brisbane in November.

Mr Abbot has so far declined to ban him Putin from attending the G20 under Australia's presidency.